Canexus Corporation
TSX : CUS

Canexus Corporation

December 05, 2013 09:22 ET

Canexus Corporation Announces Signing of Long-Term, Take-or-Pay Unit Train Contract

CALGARY, ALBERTA--(Marketwired - Dec. 5, 2013) - Canexus Corporation (TSX:CUS) (the "Corporation" or "Canexus") today announced that it has entered into a long-term, take-or-pay agreement with a midstream logistics and marketing company and leader in transporting crude oil by rail. The agreement for pipeline receipt of bitumen blend to Canexus' Bruderheim Terminal provides for a minimum volume commitment of two unit trains per week commencing mid-2014 with a short-term option to increase to three unit trains per week.

"We are very pleased to be working with a leader in the movement of oil-by-rail in North America," said Gary Kubera, President and CEO. "With this long-term, take-or-pay contract, 60 to 70% of the expected unit train activity of 10 to 11 unit trains per week is now contracted for multiple years. The market fundamentals for oil-by-rail movements are strong and based on late-stage discussions with multiple potential unit train customers, Canexus expects to have the Bruderheim Terminal fully contracted by early 2014."

Forward-Looking Statements

This news release contains forward-looking statements and information relating to expected future events relating to Canexus and its subsidiaries, including with respect to the timing of, and expectations for, fully contracting the Bruderheim Terminal. The use of the words "expects", "anticipates", "continue", "estimates", "projects", "should", "believe", "plans", "intends", "may", "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, Canexus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

About Canexus

Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers. Canexus' common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Canexus Corporation
    Gary Kubera
    President and CEO
    (403) 571-7300

    Canexus Corporation
    Richard McLellan
    CFO
    (403) 571-7300
    www.canexus.ca